Teva debt active; Micron, Intel firm on new chip; Whiting bonds rebound ahead of earnings

By Stephanie N. Rotondo

Phoenix, July 28 – Teva Pharmaceutical Industries Ltd.’s 0.25% convertible notes due 2026 continued to see active trading on Tuesday following Monday’s announcement that the Israeli company had made a $40.5 billion offer for Allergan plc’s generic drug unit.

The notes traded as high at 170 early in the session but came back in to trade with a 168 handle.

The stock, which had run up over 16% on Monday, was slipping a bit, falling 59 cents to $71.41.

Teva, an Israeli company, will pay $33.75 billion in cash and $6.75 billion in stock for the asset. The acquisition is expected to increase Teva’s place among generic drug manufacturers.

The deal is expected to close in the first quarter of 2016.

Micron Technology Inc. and Intel Corp. convertible bonds continued to move higher Tuesday after the two companies held a press event to discuss a new memory chip the parties collaborated on.

Micron’s 3% convertible notes due 2023 moved up to 95.75, an outright gain of about 4 points. Intel’s 2.95% convertible notes due 2035 meantime rose nearly 3 points to 117.75.

Meanwhile, Whiting Petroleum Corp.’s 1.25% convertible senior notes due 2020 were rallying, a trader said.

The trader saw the paper at 87, up from early lows around 85.

The $1 billion issue priced in late March and traded well on its debut. But as oil prices have declined, so have the notes.

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